Amendments to the Potato Research and Promotion Plan, 11294-11296 [06-2117]
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11294
Federal Register / Vol. 71, No. 44 / Tuesday, March 7, 2006 / Rules and Regulations
Accordingly, 7 CFR part 915 is
corrected by making the following
amendment:
I
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 915
PART 915—AVOCADOS GROWN IN
SOUTH FLORIDA
[Docket No. FV06–915–1 C]
I
Marketing Order Regulating the
Handling of Avocados Grown In South
Florida; Florida Avocado Maturity
Requirements; Correction
Agricultural Marketing Service,
USDA.
ACTION: Correcting amendment.
AGENCY:
SUMMARY: The Agricultural Marketing
Service (AMS) is making a correction to
the section of the Code of Federal
Regulations which specifies maturity
requirements for avocados grown in
South Florida. The D date for the Meya
variety of avocados is listed incorrectly.
DATES: Effective Date: March 8, 2006.
FOR FURTHER INFORMATION CONTACT:
William G. Pimental, Marketing
Specialist, Southeast Marketing Field
Office, Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA; Telephone: (863) 324–
3375; Fax: (863) 325–8793; or George
Kelhart, Technical Advisor, Marketing
Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1400
Independence Avenue SW., STOP 0237,
Washington, DC 20250–0237;
Telephone: (202) 720–2491, Fax: (202)
720–8938.
SUPPLEMENTARY INFORMATION:
Background
AMS discovered an error in a
maturity date in § 915.332 of the
codified regulations. A final rule
published in the Federal Register on
June 16, 1994 (59 FR 30869), inserted
specific calendar dates into Table 1 of
§ 915.332(a)(2), regulating the maturity
for avocados grown in South Florida.
The D date of the Meya variety was
inadvertently published as ‘‘1–89’’
when it should have been ‘‘1–09’.
rmajette on PROD1PC67 with RULES1
Need for Correction
A maturity date for Meya variety
avocados in Marketing Order 915,
Avocados Grown in South Florida, is
incorrect and needs to be changed. In
Table 1 of § 915.332(a)(2), the date
should be ‘‘1–09’’, but the date appears
as ‘‘1–89’’. This correction document
corrects that mistake.
List of Subjects in 7 CFR Part 915
Avocados, Marketing agreements,
Reporting and recordkeeping
requirements.
VerDate Aug<31>2005
15:02 Mar 06, 2006
Jkt 208001
1. The authority citation for 7 CFR
part 915 continues to read as follows:
Authority: 7 U.S.C. 601–674.
§ 915.332
[Corrected]
2. In § 915.332, Table 1, the entry for
Meya (P) is corrected by revising the
date appearing in the ‘‘D date’’ column
to read ‘‘1–09’’.
I
Dated: February 28, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 06–2118 Filed 3–6–06; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1207
[Doc. No. FV–05–702 IFR]
Amendments to the Potato Research
and Promotion Plan
Agricultural Marketing Service,
USDA.
ACTION: Interim final rule with request
for comments.
AGENCY:
SUMMARY: The purpose of this rule is to
increase the assessment rate on handlers
and importers of potatoes from 2 cents
to 2.5 cents per hundredweight. The
increase is authorized under the Potato
Research and Promotion (Plan). The
Plan is authorized by the Potato
Research and Promotion Act (Act). In
order to sustain the three major
programs currently conducted by the
National Potato Promotion Board
(Board), International Marketing,
Domestic Marketing (which includes
retail marketing), and a nutrition
campaign at their present levels beyond
June 2006, additional revenue is
required.
DATES: This rule is effective March 8,
2006. Comments received by May 8,
2006 will be considered prior to
finalization of this rule.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this rule to: Docket Clerk,
Research and Promotion Branch, Fruit
and Vegetable Programs, AMS, USDA,
1400 Independence Avenue, SW., Stop
0244, Washington, DC 20250–0244; fax:
(202) 205–2800, e-mail:
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
Jeanette.Palmer@usda.gov.; or Internet:
https://www.regulations.gov. All
comments should reference the docket
number, the date and the page number
of this issue of the Federal Register and
will be made available for public
inspection in the Office of the Docket
Clerk during regular business hours, or
can be viewed at: http//
www.ams.usda.gov/fv/rpb.html.
FOR FURTHER INFORMATION CONTACT:
Jeanette Palmer, Research and
Promotion Branch, Fruit and Vegetable
Programs, AMS, USDA, 1400
Independence Avenue, SW., Stop 0244,
Washington, DC 20250–0244; telephone
(202) 720–5976 or fax (202) 205–2800.
SUPPLEMENTARY INFORMATION: This rule
is issued under the Potato Research and
Promotion (Plan) [7 CFR part 1207],
which became effective March 9, 1972.
The Plan is authorized by the Potato
Research and Promotion Act (Act) [7
U.S.C. 2611–2627].
Executive Order 12988
This rule has been reviewed under the
Executive Order 12988, Civil Justice
Reform. This rule is not intended to
have retroactive effect. This rule will
not preempt any state or local laws,
regulations, or policies unless they
present an irreconcilable conflict with
this rule. The Act provides that
administrative proceedings must be
exhausted before parties may file suit in
court.
Under the Act, a person subject to the
plan may file a petition with the
Secretary of Agriculture (Secretary)
stating that such plan, any provision of
such plan, or any obligation imposed in
connection with such plan is not in
accordance with law; and requesting a
modification of the plan or an
exemption from the plan. Such person
is afforded the opportunity for a hearing
on the petition. After the hearing, the
Secretary will rule on the petition. The
Act provides that the district court of
the United States in any district in
which such person is an inhabitant, or
has principal place of business, has
jurisdiction to review the Secretary’s
ruling on the petition, provided that a
complaint is filed within 20 days after
the date of entry of the ruling.
Executive Order 12866
The Office of Management and Budget
(OMB) has waived the review process
required by Executive Order 12866 for
this action.
Regulatory Flexibility Act and
Paperwork Reduction Act
In accordance with the Regulatory
Flexibility Act (RFA) [5 U.S.C. 601 et
seq.], the Agricultural Marketing Service
E:\FR\FM\07MRR1.SGM
07MRR1
rmajette on PROD1PC67 with RULES1
Federal Register / Vol. 71, No. 44 / Tuesday, March 7, 2006 / Rules and Regulations
has examined the impact of this rule on
small entities. The purpose of the RFA
is to fit regulatory actions to scale of
businesses subject to such action so that
small businesses will not be
disproportionately burdened.
There are approximately 1,353
handlers, 5,223 producers, and 300
importers of potatoes and potato
products who are subject to the
provisions of the Plan. The Small
Business Administration (SBA) defines
small agricultural businesses, which
includes handlers and importers, as
those whose annual receipts are less
than $6 million, and small agricultural
producers are defined as those having
annual receipts of no more than
$750,000 annually. Most of the
producers and handlers, and some of
the importers would be classified as
small businesses under the criteria
established by the SBA [13 CFR
121.201].
Currently, potato handlers and
importers pay a mandatory assessment
of 2 cents per hundredweight.
Assessments under the program are
used to fund promotional campaigns
and to conduct research in the areas of
U.S. marketing, and international
marketing and to enable the Board to
exercise its duties in accordance with
the Plan. The 2 cent assessment
generates about $8.5 million in annual
revenues. The current assessment
became effective when the Plan was
amended in May 1984, to increase the
maximum assessment rate from 1 cent
per hundredweight to 0.5 percent of the
previous 10-year average price received
by growers. The Plan is administered by
the National Potato Promotion Board
(Board) under USDA supervision.
In order to sustain the three major
programs currently conducted by the
Board, International Marketing,
Domestic Marketing (which includes
retail marketing), and a nutrition
campaign at their present levels beyond
June 2006, additional revenue is
required. The Board approved this
increase in the assessment rate at its
March 19, 2005, annual meeting. This
increase is consistent with section
1207.342(a) of the Plan, which provides
such assessments shall be levied at a
rate fixed by the Secretary which shall
not exceed one-half of one per centum
of the immediate past ten calendar years
United States average price received for
potatoes by growers as reported by the
Department of Agriculture. Further, not
more than one such assessment may be
collected on any potatoes.
The 1⁄2 cent assessment rate increase
will bring in an estimated $1.5 to $2
million in new revenue, depending
upon production levels. For 2005,
VerDate Aug<31>2005
15:02 Mar 06, 2006
Jkt 208001
domestic production was 420,879,000
hundredweight and imports represented
59,683,000 hundredweight. The new
rate would allow the Board to maintain
its investment in the nutrition campaign
and marketing programs. It is estimated
that the Board would collect
approximately $10 million in
assessments with a 2.5 cent per
hundredweight assessment rate. Any
additional costs should be offset by the
benefits to be derived from the research
and promotion programs. The Board has
determined that the 1⁄2 cent increase in
assessments would cost potato growers
less than one-half of one percent
(0.005%) of total production costs or
approximately $1.75 per acre based on
average yields.
Alternatives were also considered by
the Board, which included cutting back
funding of marketing programs and the
nutrition campaign, and eliminating the
nutrition campaign. All of the
alternatives were rejected by the Board
because it was determined that by the
continued funding of the marketing
programs and the nutrition campaign
would help increase the demand of
potatoes. In order to continue to fund
these programs, the Board needs to
increase the assessment rate by 1⁄2 cent
per hundredweight.
There are no relevant Federal rules
that duplicate, overlap, or conflict with
this rule.
In accordance with the OMB
regulation [5 CFR part 1320] which
implements the Paperwork Reduction
Act of 1995 [44 U.S.C. Chapter 35], the
information collection and
recordkeeping requirements that are
imposed by the Plan have been
approved previously under OMB
control number 0581–0093. This rule
does not result in a change to the
information collection and
recordkeeping requirements previously
approved.
We have performed this initial
Regulatory Flexibility Analysis
regarding the impact of this amendment
to the Plan on small entities, and we
invite comments concerning potential
effects of the proposed amendment.
Background
The Plan became effective on March
9, 1972, after a national referendum
among producers. Under the Plan,
handlers and importers are assessed 2
cents per hundredweight. No
assessment shall be levied on potatoes
grown in the 50 States of the United
States by producers of less than 5 acres
of potatoes. Importers pay assessments
on all tablestock potatoes imported for
ultimate human consumption and on all
imported seed potatoes. The program
PO 00000
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Fmt 4700
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11295
currently generates about $8.5 million
in annual revenues, which is
administered by the Board under USDA
supervision. The Board administers a
national program of research
development, advertising, and
promotion designed to strengthen
potatoes’ competitive position and to
maintain and expand domestic and
foreign markets for potatoes and potato
products.
Currently, the assessment rate is 2
cents per hundredweight levied on all
potatoes produced within the 50 States
of the United States and on imports of
potatoes. In order to sustain the three
major programs being conducted by the
Board, International Marketing,
Domestic Marketing (which includes
retail marketing), and a nutrition
campaign at their present levels beyond
June 2006, additional revenue to the
Board is required. The 1⁄2 cent
assessment rate increase will bring in an
estimated $1.5 to $2 million in new
revenue, depending upon production
levels. For 2005, domestic production
was 420,879,000 hundredweight and
imports represented 59,683,000
hundredweight. The new rate would
allow the Board to maintain its
investment in the nutrition campaign
and marketing programs. It is estimated
that the Board would collect
approximately $10 million in
assessments with a 2.5 cent per
hundredweight assessment rate. Any
additional cost should be offset by the
benefits to be derived from research and
promotion programs.
In addition, the Board, whose
members represent all potato producing
states as well as importers, voted to
increase the assessment rate at its March
19, 2005, annual meeting. Eighty-eight
percent of the Board voted to increase
the assessment rate. The majority of
those that opposed the increase in
assessment rate had a number of
reasons, including a view that a State
program is preferable over a national
program and concern about the impact
on growers.
This action will amend the rules and
regulations issued under the Plan. This
action will increase the assessment rate
by 1⁄2 cent. The rate would increase from
2 cents to 2.5 cents per hundredweight.
The 2.5 cents is within the formula
allowed by section 1207.342 (a) of the
Plan which states the funds to cover the
Board’s expenses shall be acquired by
the levying of assessments upon handler
and importers as designated in
regulations recommended by the Board
and issued by the Secretary. Such
assessments shall be levied at a rate
fixed by the Secretary which shall not
exceed one-half of one per centum of
E:\FR\FM\07MRR1.SGM
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11296
Federal Register / Vol. 71, No. 44 / Tuesday, March 7, 2006 / Rules and Regulations
the immediate past ten calendar years
United States average price received for
potatoes by growers as reported by the
Department of Agriculture. Further, not
more than one such assessment may be
collected on any potatoes. The average
price was determined to be $5.88 using
the years 1994–2003 and one-half of one
per centum is 2.94 cents. Accordingly,
the Board’s recommendation of 2.5
cents is within the formula allowed by
section 1207.342(a).
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to public interest to give
preliminary notice prior to putting this
rule into effect and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The increase in the
assessment rate should correspond as
closely as practicable with the new 2006
crop; (2) the Board currently needs
additional funding to maintain its
marketing programs and nutrition
campaign; and (3) a sixty-day period is
provided for interested persons to
comment.
List of Subjects in 7 CFR Part 1207
Administrative practice and
procedure, Advertising, Consumer
information, Marketing agreements,
Potatoes, Promotion, Reporting and
recordkeeping requirements.
I For the reasons set forth in the
preamble, 7 CFR part 1207 is amended
as follows:
PART 1207—POTATO RESEARCH
AND PROMOTION PLAN
Authority: 7 U.S.C. 2611–2627.
2. In § 1207.510, paragraphs (a)(1),
(b)(1) and the table immediately
following paragraph (b)(3) are revised to
read as follows:
rmajette on PROD1PC67 with RULES1
Levy of assessments.
(a) * * * (1) An assessment rate of 2.5
cents per hundredweight shall be levied
on all potatoes produced within the 50
States of the United States.
*
*
*
*
*
(b) * * * (1) An assessment rate of 2.5
cents per hundredweight shall be levied
on all tablestock potatoes imported into
the United States for ultimate
consumption by humans and all seed
potatoes imported into the United
States. An assessment rate of 2.5 cents
per hundredweight shall be levied on
the fresh weight equivalents of imported
frozen or processed potatoes for
15:02 Mar 06, 2006
Jkt 208001
0701.10.0020
0701.10.0040
0701.90.1000
0701.90.5010
0701.90.5020
0701.90.5030
0701.90.5040
0710.10.0000
2004.10.4000
2004.10.8020
2004.10.8040
0712.90.3000
2005.20.0070
1105.10.0000
1105.20.0000
2005.20.0040
2005.20.0020
1108.13.0010
Assessment
cents/cwt
cents/kg
2.50
2.50
2.50
2.50
2.50
2.50
2.50
5.00
5.00
5.00
5.00
3.93
17.86
17.86
17.86
17.86
10.20
22.50
0.0551
0.0551
0.0551
0.0551
0.0551
0.0551
0.0551
0.1103
0.1103
0.1103
0.1103
0.0866
0.3936
0.3936
0.3936
0.3936
0.2250
0.4961
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
Dated: February 28, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 06–2117 Filed 3–6–06; 8:45 am]
BILLING CODE 3410–02–P
12 CFR Part 202
The Equal
Credit Opportunity Act (ECOA), 15
U.S.C. 1691–1691f, makes it unlawful
for a creditor to discriminate against an
applicant in any aspect of a credit
transaction on the basis of the
applicant’s national origin, marital
status, religion, sex, color, race, age
(provided the applicant has the capacity
to contract), receipt of public assistance
benefits, or the good faith exercise of a
right under the Consumer Credit
Protection Act, 15 U.S.C. 1601 et seq.
The ECOA is implemented by the
Board’s Regulation B.
In addition to the general prohibition
against discrimination, Regulation B
contains specific rules concerning the
taking and evaluation of credit
applications, including procedures and
notices for credit denials and other
adverse action. Under section 202.9 of
Regulation B, notification given to an
applicant when adverse action is taken
must contain the name and address of
the federal agency that administers
compliance with respect to the creditor.
The federal agencies’ names and
addresses are listed in Appendix A of
Regulation B. This technical
amendment updates the addresses of the
Office of the Comptroller of the
Currency and the United States Small
Business Administration.
SUPPLEMENTARY INFORMATION:
12 CFR Chapter II
List of Subjects in 12 CFR Part 202
Aged, Banks, banking, Civil rights,
Consumer protections, Credit,
Discrimination, Federal Reserve System,
Marital status discrimination, Penalties,
Religious discrimination, Sex
discrimination.
Authority and Issuance
[Regulation B; Docket No. R–1251]
I
VerDate Aug<31>2005
Tablestock potatoes,
frozen or processed
potatoes, and seed
potatoes
FEDERAL RESERVE SYSTEM
1. The authority citation for part 1207
continues to read as follows:
I
§ 1207.510
ultimate consumption by humans. The
importer of imported tablestock
potatoes, potato products, or seed
potatoes shall pay the assessment to the
Board through the U.S. Customs Service
and Border Protection at the time of
entry or withdrawal for consumption of
such potatoes and potato products into
the United States.
*
*
*
*
*
(3) * * *
Equal Credit Opportunity
Board of Governors of the
Federal Reserve System.
ACTION: Final Rule; Technical
amendments.
For the reasons set forth in the
preamble, the Board amends 12 CFR
part 202 to read as follows:
PART 202—EQUAL CREDIT
OPPORTUNITY ACT (REGULATION B)
AGENCY:
The Board is publishing
technical amendments to Regulation B
(Equal Credit Opportunity Act) to
update the addresses of certain federal
enforcement agencies.
DATES: Effective Date: March 7, 2006.
FOR FURTHER INFORMATION CONTACT:
Minh-Duc T. Le, Senior Attorney,
Division of Consumer and Community
Affairs, Board of Governors of the
Federal Reserve System, at (202) 452–
3667. For the users of
Telecommunications Device for the Deaf
(‘‘TDD’’) only, contact (202) 263–4869.
SUMMARY:
PO 00000
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Fmt 4700
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I
1. The authority citation for part 202
continues to read as follows:
I
Authority: 15 U.S.C. 1691–1691f.
2. Appendix A is amended by revising
the following Federal Enforcement
Agencies addresses to read as follows:
I
APPENDIX A TO PART 202—FEDERAL
ENFORCEMENT AGENCIES
*
*
*
*
*
National Banks, and Federal
Branches and Federal Agencies of
Foreign Banks: Office of the Comptroller
of the Currency, Customer Assistance
E:\FR\FM\07MRR1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 44 (Tuesday, March 7, 2006)]
[Rules and Regulations]
[Pages 11294-11296]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-2117]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1207
[Doc. No. FV-05-702 IFR]
Amendments to the Potato Research and Promotion Plan
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The purpose of this rule is to increase the assessment rate on
handlers and importers of potatoes from 2 cents to 2.5 cents per
hundredweight. The increase is authorized under the Potato Research and
Promotion (Plan). The Plan is authorized by the Potato Research and
Promotion Act (Act). In order to sustain the three major programs
currently conducted by the National Potato Promotion Board (Board),
International Marketing, Domestic Marketing (which includes retail
marketing), and a nutrition campaign at their present levels beyond
June 2006, additional revenue is required.
DATES: This rule is effective March 8, 2006. Comments received by May
8, 2006 will be considered prior to finalization of this rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule to: Docket Clerk, Research and Promotion Branch,
Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW.,
Stop 0244, Washington, DC 20250-0244; fax: (202) 205-2800, e-mail:
Jeanette.Palmer@usda.gov.; or Internet: https://www.regulations.gov. All
comments should reference the docket number, the date and the page
number of this issue of the Federal Register and will be made available
for public inspection in the Office of the Docket Clerk during regular
business hours, or can be viewed at: http//www.ams.usda.gov/fv/
rpb.html.
FOR FURTHER INFORMATION CONTACT: Jeanette Palmer, Research and
Promotion Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., Stop 0244, Washington, DC 20250-0244;
telephone (202) 720-5976 or fax (202) 205-2800.
SUPPLEMENTARY INFORMATION: This rule is issued under the Potato
Research and Promotion (Plan) [7 CFR part 1207], which became effective
March 9, 1972. The Plan is authorized by the Potato Research and
Promotion Act (Act) [7 U.S.C. 2611-2627].
Executive Order 12988
This rule has been reviewed under the Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule will not preempt any state or local laws, regulations, or
policies unless they present an irreconcilable conflict with this rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court.
Under the Act, a person subject to the plan may file a petition
with the Secretary of Agriculture (Secretary) stating that such plan,
any provision of such plan, or any obligation imposed in connection
with such plan is not in accordance with law; and requesting a
modification of the plan or an exemption from the plan. Such person is
afforded the opportunity for a hearing on the petition. After the
hearing, the Secretary will rule on the petition. The Act provides that
the district court of the United States in any district in which such
person is an inhabitant, or has principal place of business, has
jurisdiction to review the Secretary's ruling on the petition, provided
that a complaint is filed within 20 days after the date of entry of the
ruling.
Executive Order 12866
The Office of Management and Budget (OMB) has waived the review
process required by Executive Order 12866 for this action.
Regulatory Flexibility Act and Paperwork Reduction Act
In accordance with the Regulatory Flexibility Act (RFA) [5 U.S.C.
601 et seq.], the Agricultural Marketing Service
[[Page 11295]]
has examined the impact of this rule on small entities. The purpose of
the RFA is to fit regulatory actions to scale of businesses subject to
such action so that small businesses will not be disproportionately
burdened.
There are approximately 1,353 handlers, 5,223 producers, and 300
importers of potatoes and potato products who are subject to the
provisions of the Plan. The Small Business Administration (SBA) defines
small agricultural businesses, which includes handlers and importers,
as those whose annual receipts are less than $6 million, and small
agricultural producers are defined as those having annual receipts of
no more than $750,000 annually. Most of the producers and handlers, and
some of the importers would be classified as small businesses under the
criteria established by the SBA [13 CFR 121.201].
Currently, potato handlers and importers pay a mandatory assessment
of 2 cents per hundredweight. Assessments under the program are used to
fund promotional campaigns and to conduct research in the areas of U.S.
marketing, and international marketing and to enable the Board to
exercise its duties in accordance with the Plan. The 2 cent assessment
generates about $8.5 million in annual revenues. The current assessment
became effective when the Plan was amended in May 1984, to increase the
maximum assessment rate from 1 cent per hundredweight to 0.5 percent of
the previous 10-year average price received by growers. The Plan is
administered by the National Potato Promotion Board (Board) under USDA
supervision.
In order to sustain the three major programs currently conducted by
the Board, International Marketing, Domestic Marketing (which includes
retail marketing), and a nutrition campaign at their present levels
beyond June 2006, additional revenue is required. The Board approved
this increase in the assessment rate at its March 19, 2005, annual
meeting. This increase is consistent with section 1207.342(a) of the
Plan, which provides such assessments shall be levied at a rate fixed
by the Secretary which shall not exceed one-half of one per centum of
the immediate past ten calendar years United States average price
received for potatoes by growers as reported by the Department of
Agriculture. Further, not more than one such assessment may be
collected on any potatoes.
The \1/2\ cent assessment rate increase will bring in an estimated
$1.5 to $2 million in new revenue, depending upon production levels.
For 2005, domestic production was 420,879,000 hundredweight and imports
represented 59,683,000 hundredweight. The new rate would allow the
Board to maintain its investment in the nutrition campaign and
marketing programs. It is estimated that the Board would collect
approximately $10 million in assessments with a 2.5 cent per
hundredweight assessment rate. Any additional costs should be offset by
the benefits to be derived from the research and promotion programs.
The Board has determined that the \1/2\ cent increase in assessments
would cost potato growers less than one-half of one percent (0.005%) of
total production costs or approximately $1.75 per acre based on average
yields.
Alternatives were also considered by the Board, which included
cutting back funding of marketing programs and the nutrition campaign,
and eliminating the nutrition campaign. All of the alternatives were
rejected by the Board because it was determined that by the continued
funding of the marketing programs and the nutrition campaign would help
increase the demand of potatoes. In order to continue to fund these
programs, the Board needs to increase the assessment rate by \1/2\ cent
per hundredweight.
There are no relevant Federal rules that duplicate, overlap, or
conflict with this rule.
In accordance with the OMB regulation [5 CFR part 1320] which
implements the Paperwork Reduction Act of 1995 [44 U.S.C. Chapter 35],
the information collection and recordkeeping requirements that are
imposed by the Plan have been approved previously under OMB control
number 0581-0093. This rule does not result in a change to the
information collection and recordkeeping requirements previously
approved.
We have performed this initial Regulatory Flexibility Analysis
regarding the impact of this amendment to the Plan on small entities,
and we invite comments concerning potential effects of the proposed
amendment.
Background
The Plan became effective on March 9, 1972, after a national
referendum among producers. Under the Plan, handlers and importers are
assessed 2 cents per hundredweight. No assessment shall be levied on
potatoes grown in the 50 States of the United States by producers of
less than 5 acres of potatoes. Importers pay assessments on all
tablestock potatoes imported for ultimate human consumption and on all
imported seed potatoes. The program currently generates about $8.5
million in annual revenues, which is administered by the Board under
USDA supervision. The Board administers a national program of research
development, advertising, and promotion designed to strengthen
potatoes' competitive position and to maintain and expand domestic and
foreign markets for potatoes and potato products.
Currently, the assessment rate is 2 cents per hundredweight levied
on all potatoes produced within the 50 States of the United States and
on imports of potatoes. In order to sustain the three major programs
being conducted by the Board, International Marketing, Domestic
Marketing (which includes retail marketing), and a nutrition campaign
at their present levels beyond June 2006, additional revenue to the
Board is required. The \1/2\ cent assessment rate increase will bring
in an estimated $1.5 to $2 million in new revenue, depending upon
production levels. For 2005, domestic production was 420,879,000
hundredweight and imports represented 59,683,000 hundredweight. The new
rate would allow the Board to maintain its investment in the nutrition
campaign and marketing programs. It is estimated that the Board would
collect approximately $10 million in assessments with a 2.5 cent per
hundredweight assessment rate. Any additional cost should be offset by
the benefits to be derived from research and promotion programs.
In addition, the Board, whose members represent all potato
producing states as well as importers, voted to increase the assessment
rate at its March 19, 2005, annual meeting. Eighty-eight percent of the
Board voted to increase the assessment rate. The majority of those that
opposed the increase in assessment rate had a number of reasons,
including a view that a State program is preferable over a national
program and concern about the impact on growers.
This action will amend the rules and regulations issued under the
Plan. This action will increase the assessment rate by \1/2\ cent. The
rate would increase from 2 cents to 2.5 cents per hundredweight. The
2.5 cents is within the formula allowed by section 1207.342 (a) of the
Plan which states the funds to cover the Board's expenses shall be
acquired by the levying of assessments upon handler and importers as
designated in regulations recommended by the Board and issued by the
Secretary. Such assessments shall be levied at a rate fixed by the
Secretary which shall not exceed one-half of one per centum of
[[Page 11296]]
the immediate past ten calendar years United States average price
received for potatoes by growers as reported by the Department of
Agriculture. Further, not more than one such assessment may be
collected on any potatoes. The average price was determined to be $5.88
using the years 1994-2003 and one-half of one per centum is 2.94 cents.
Accordingly, the Board's recommendation of 2.5 cents is within the
formula allowed by section 1207.342(a).
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to public
interest to give preliminary notice prior to putting this rule into
effect and that good cause exists for not postponing the effective date
of this rule until 30 days after publication in the Federal Register
because: (1) The increase in the assessment rate should correspond as
closely as practicable with the new 2006 crop; (2) the Board currently
needs additional funding to maintain its marketing programs and
nutrition campaign; and (3) a sixty-day period is provided for
interested persons to comment.
List of Subjects in 7 CFR Part 1207
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Potatoes, Promotion, Reporting and
recordkeeping requirements.
0
For the reasons set forth in the preamble, 7 CFR part 1207 is amended
as follows:
PART 1207--POTATO RESEARCH AND PROMOTION PLAN
0
1. The authority citation for part 1207 continues to read as follows:
Authority: 7 U.S.C. 2611-2627.
0
2. In Sec. 1207.510, paragraphs (a)(1), (b)(1) and the table
immediately following paragraph (b)(3) are revised to read as follows:
Sec. 1207.510 Levy of assessments.
(a) * * * (1) An assessment rate of 2.5 cents per hundredweight
shall be levied on all potatoes produced within the 50 States of the
United States.
* * * * *
(b) * * * (1) An assessment rate of 2.5 cents per hundredweight
shall be levied on all tablestock potatoes imported into the United
States for ultimate consumption by humans and all seed potatoes
imported into the United States. An assessment rate of 2.5 cents per
hundredweight shall be levied on the fresh weight equivalents of
imported frozen or processed potatoes for ultimate consumption by
humans. The importer of imported tablestock potatoes, potato products,
or seed potatoes shall pay the assessment to the Board through the U.S.
Customs Service and Border Protection at the time of entry or
withdrawal for consumption of such potatoes and potato products into
the United States.
* * * * *
(3) * * *
------------------------------------------------------------------------
Assessment
Tablestock potatoes, frozen or processed potatoes, --------------------
and seed potatoes cents/cwt cents/kg
------------------------------------------------------------------------
0701.10.0020....................................... 2.50 0.0551
0701.10.0040....................................... 2.50 0.0551
0701.90.1000....................................... 2.50 0.0551
0701.90.5010....................................... 2.50 0.0551
0701.90.5020....................................... 2.50 0.0551
0701.90.5030....................................... 2.50 0.0551
0701.90.5040....................................... 2.50 0.0551
0710.10.0000....................................... 5.00 0.1103
2004.10.4000....................................... 5.00 0.1103
2004.10.8020....................................... 5.00 0.1103
2004.10.8040....................................... 5.00 0.1103
0712.90.3000....................................... 3.93 0.0866
2005.20.0070....................................... 17.86 0.3936
1105.10.0000....................................... 17.86 0.3936
1105.20.0000....................................... 17.86 0.3936
2005.20.0040....................................... 17.86 0.3936
2005.20.0020....................................... 10.20 0.2250
1108.13.0010....................................... 22.50 0.4961
------------------------------------------------------------------------
Dated: February 28, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 06-2117 Filed 3-6-06; 8:45 am]
BILLING CODE 3410-02-P
